Purchase agreements (contracts or invoice) are routinely made between suppliers and buyers. Typically, a buyer identifies goods for purchase. The buyer submits a purchase order to the supplier for the identified good, and the supplier submits an invoice to the buyer. Typically, the contract between the supplier and buyer (purchase order) includes a purchase price, and a payment terms.
In some situations, the supplier has a need for cash after an invoice has been approved, but before the invoice has been paid. To address the cash need, the supplier may be willing to reduce the price of the invoice in exchange for prepayment of the invoice. The supplier or the buyer may then suggest reducing the amount due a certain amount in exchange for reducing the payment term. That is, the supplier may offer a reduction in amount due through prepayment, in which the prepayment is made within a reduced payment term.
The supplier, however, is limited to negotiating the prepayment of the invoice with the buyer. Other parties are not involved. Therefore, if the buyer cannot or will not prepay the invoice, the supplier does not have an alternate source for prepayment.
There is a need for a method, apparatus and a system for providing a supplier with alternative ways to obtain prepayment of an invoice.